You have found the most perfect assisted living facility for mom. It has all the bells and whistles you want, you’ve come to terms with the price, and you know you (or your mom) can pay it.
But… you start to worry.
You recall 2008 when gas jumped to $4 a gallon –a $2 increase in two years.
You think about how the cost of living seems to increase each year but somehow, your salary doesn’t always increase at the same rate.
Can you afford much of a rate increase in assisted living? If Indiana trends from the past five years continue…. you won’t have to worry about it.
Recently, Genworth Financial released their 2016 Cost of Care Survey. The survey, which examines pricing associated with home care providers, adult day health care facilities, assisted living facilities and nursing homes, produced fantastic results for anyone interested in assisted living.
Let’s analyze the assisted living data:
Median Monthly Rate: $3,528
Five-Year Growth Rate (since 2011): 0%
Median Monthly Rate: $3,628
Five-Year Growth Rate (since 2011): 2.16%
So, although the median monthly rate for assisted living in Indiana is $93 more than the US average, in the last five years, Indiana’s median monthly rate has not raised – not even by the smallest percentage, unlike the US average which raised 2.16%.
To put this into perspective, if your mom collects social security, in 2015 she received a 1.7% increase in her payout to account for the adjusted cost of living.
So what does this mean? What is a ͞cost of living adjustment?͟ The cost of living adjustment accounts for the change in goods and services to live and is in alignment with the consumer price index.
So – what should you take from all of this information?
1.Indiana’s price for assisted living has NOT increased overall in the last five years.
2.The cost of living has gone up, but the cost of ASSISTED LIVING has not.
3.Indiana’s median cost for assisted living is nearly right at the national average.
With Baby Boomers coming down the pipeline and heading for assisted living (the oldest boomers turn 70 this year), supply is going up to be ready to meet the demand head-on.
“I am sure the influx of competition has kept the pricing constant,” Justus Companies’ Vice President of Operations Angela Miller said.
So, while you are still wondering about the future costs of assisted living, keep in mind that it’s been one of the stable pieces of the Indiana economy. And, with Baby Boomers only turning 70 this year, we have awhile before the demand catches up with supply.
The Indiana Assisted Living Association developed a calculator to assist consumers in assessing the value of an assisted living community. The calculator can be found at https://inassistedliving.org/resources/assisted-living-calculator/.